Does depreciation appear on the income statement?

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1236074

2026-04-01 12:15

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Yes, but it also appears on the balance sheet. When depreciation is posted in the accounts, the double entry is Dr Depreciation (IS) and Cr Accumulated Depreciation (BS). The IS account takes the debit side as an expense, while the balance sheet takes the credit side which offsets against purchase cost of the asset, thereby reducing the net book value by the same amount.

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